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SOCIAL CLASS

A major influence on one's purchasing habits and consumer behavior is the social class in
which one finds him or herself. Social class is considered an external influence on consumer
behavior because it is not a function of feelings or knowledge. Social class is often hard to
define; in fact, many people dispute the existence of social classes in the United States.
Usually, however, people are grouped in social classes according to income, wealth,
education, or type of occupation. Perhaps the simplest model to define social class is a threetiered approach that includes the rich, the middle class, and the poor. Other models have as
many as a dozen levels. People in the same social class tend to have similar attitudes, live in
similar neighbourhoods, dress alike, and shop at the same type of stores.
Influence on Consumer Behavior
Social class can have a profound effect on consumer spending habits. Perhaps the most
obvious effect is the level of disposable income of each social class. Generally, the rich have
the ability to purchase more consumer goods than those with less income, and those goods
are of higher quality . There is also a distinction in the type of goods purchased. For example,
the upper class tend to be the primary buyers of fine jewellery and often shop at
exclusive retailers. The lower class, in contrast, are much more concerned with simply getting
by; they focus more on necessities.

Social Stratification, the division of members of a society into a hierarchy of distinct social
classes, exists in all societies and cultures.
Social class usually is defined by the amount of status that members of a specific class
possess in relation to members of other classes. Social-class membership often serves as a
frame of reference for the development of consumer attitudes and behaviour.
The measurement of social class is concerned with classifying individuals into social class
groupings. These groupings are of particular value to marketers, who use social classification
as an effective means of identifying and segmenting target markets.

There are 3 basic methods for measuring social class:

Subjective Measurement
Reputational Measurement
Objective Measurement

Subjective Measures rely on an individuals self-perception.


Reputational Measures rely on an individuals perceptions of others and
Objective Measures use specific socioeconomic measures, either alone or in combination
with others.

Composite variable indexes such as the index of status characteristics and the socio economic
status score, combines a no. of socio economic factors to form one overall measure of social
class standing.
Class structures range from two class to nine class systems. A frequently used classification
system consists of 6 classes: Upper upper, lower Upper, upper middle, lower middle,
upper lower, and lower lower classes.
Profiles of these classes are reflected in differences in attitudes, in leisure activities, and in
consumption habits. That is why, for the marketers, social class based market segmentation is
of high importance.
Geodemographic clustering is a technique that combines geographic and socio economic
factors to locate concentrations of consumers with particular characteristics. Particular
attention currently is being directed to affluent consumers, who represent the fastest growing
segment in our population; however, some marketers are finding it extremely profitable to
cater to the needs of non-affluent consumers.
Research has revealed social class differences in clothing habits, home decoration, leisure
activities, as well as saving, spending and credit habits.
Thus, smart marketers tailor specific product and promotional strategies to each social-class
target segment.

Social Class Membership

Members of the same social class tend to share common values, beliefs, and behaviours that
unite them (as opposed to simple demographics).
Membership in a higher class generally leads to greater influence within the workplace,
organizations, and society as a whole.

What Is Social Class?


What is Your Social Class?
What is the social class of the person sitting next to you?
How can you tell? What info are you using to make this judgment?
Subjective (rank self), reputational (someone gives opinion of your social class), objective
methods (uses scores on various observable variables)
Occupation: best single indicator of social class
Personal performance: a persons success relative to that of others (often in the same
occupation)
Interactions: the people with whom one associates and socializes
Possessions: symbols of class membership living room scale
Occupation
What a person does for a living
It is an indicator of other signs of class membership: income, personal associations, and status
Further class assumptions within an occupation may be based on performance level
Income Source
Level of income is not by itself a good indicator of class.
Income source along with occupation may help us determine whether two individuals that
have the same income belong in the same class: investments, inheritance, old wealth, etc.

Ways to calculate Social Class?


Scores on weighted scales - each item represents something of value in the specific culture.
The weights represent the relative importance in that culture.
Computerized Status Index (CSI) separates out data on both spouses
Hollingsheads Index (residence x 6, occupation x 9, education x 5)
Warners Index: occupation, source of income, house type, dwelling area

Social Class Structures (A six-class hierarchy)


Upper Upper Class: Attend elite schools, engage in inconspicuous consumption
Lower Upper Class: Represent New Money, New Wealth, successful business executives,
Upper-Middle Class: Professionals, independent businesspeople, corporate executives
Lower-Middle Class: Salespeople, clerical workers, supervisors, construction contractors,
small retail store owners
Upper-Lower Class: Skilled and semi-skilled blue-collar workers
Lower-Lower Class: Lower blue-collar workers, the unemployed, families on welfare, and
unskilled workers, marketing to the poor

Social class is an important source of beliefs, values, and behaviours


Why? Look at the indicators: what one does for a living, what ones education is, where
your life, what you earn
Different social classes value education differently
Attitudes toward family life, raising children, the role of women, etc., vary from class to class
Time with children, attitude toward work, care of self
People in various social classes exhibit markedly different lifestyles
Activities outside home, times of meals, types of sports

Can marketers use social class? Product influence


Its relevance may be product-specific
Products people buy: clothing, home furnisihings and appliances
Conspicuous items - things people are likely to talk about and compare among themselves
Certain brands are associated with specific social classes (occupations, educ, etc)
Brands of beer, wine, etc.

Social Class and Marketplace Behavior: Media Use


Influence on media use

Lower-Class people are less likely to subscribe to newspapers than are members of the
middle class.
Choice of magazine is likely tied to education and reading ability
Lower-Middle Class: Readers Digest, Ladies Home Journal
Upper-Middle Class: Time, The New Yorker, etc.
Broadcast media choice also varies by social class
Upper-middle class: NBC vs. lower-middle class: CBS
Lower-middle class: more responsive to audio-visual forms of communication

Influence on Advertising: Themes


Lower-Status consumers are more receptive to advertising that depicts activity, ongoing work
and life, expressions of energy, etc. Why?
Upper-Middle Class consumers are more critical of advertising, suspicious of emotional
appeals, and skeptical of claims. Why?

Social Class: Shopping


Lower-class women are the most impulsive about shopping
Outlet choice varies by social class
Upper-lower class women are likely to respond to promotions offering coupons or other
special inducements
Members of the upper class prefer traditional home furnishings

Social Class and Leisure


Bowling, TV, and bingo are favourite lower-class leisure pursuits
Most activities enjoyed by middle- and upper-class people are less time consuming than
lower-class choices

Limitation of Social Class

Social class is more difficult to measure than income


Many purchase behaviours are related more to income than social class
Consumers often use expected social class for their consumption patterns
Dual incomes have changed consumption patterns
Individual dimensions of social class are sometimes better predictors of consumer
behaviour

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